Market Update Into April 10th: Quarter Two Begins

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Though markets caught some headwinds to start the week, relief came on Thursday with big moves into the long weekend. Whether the Q1 rally can continue into Q2 is yet to be seen, but with bank earnings starting up next week, all eyes will surely be on financials and the small caps as they’re both at critical long-term levels of support that must hold in order for this bull market to continue! Let’s dig into the individual names.

Weekly Analysis

This week, the SPY ETF closed at $409.19 (-0.04%). making no additional headway relative to last week’s close, but managing another week above the all-important AVWAP from the all-time high. Just above lies the descending channel and the 50% Fibonacci retracement level, which are both acting as resistance for the time being.

This is an image of the daily and weekly charts of the SPY index.

This week, the QQQ ETF closed at $318.05 (-0.89%), giving back a few dollars relative to last week’s close and closing at the top of the ascending channel seen on the daily chart. This index did manage another weekly close above the AVWAP from the all-time high, and above lies the 50% Fibonacci retracement level which could act as resistance if the price is able to continue higher in the weeks to come.

This is an image of the daily and weekly charts of the QQQ index.

This week, the IWM ETF closed at $173.89 (-2.50%), rejecting off the bottom of the ascending channel and giving back much of what it gained last week. It did manage to close right at the Point Of Control from the October 2022 low. This index is at a critical multi-year level, and bulls will want to see this area hold for the market to continue its move higher in the weeks and months to come.